NEW YORK (TheStreet) -- Privately owned Advance Publications' Conde Nast unit, publisher of iconic magazines including The New Yorker, Vogue and Wired, decided earlier in July to ditch its own data center, moving its operations to Amazon's (AMZN) clouds. The move puts under scrutiny one of the biggest problem currently faced by publishers -- legacy technical debt.
Like a financial debt that costs money to be repaid, technical debt is the cost associated to the use of old technology, said Tom Hendrickson, founder and CEO of Mitre Media in Edmonton, Alberta. Publishers who create and deliver content in the cloud have a huge financial advantage over those who don't.
Investors should look at the computer platforms used by the companies they own and measure that legacy technical debt against margins and switching costs, to see whether the companies they are buying are worth their money.
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